Asian LNG Demand on Hold Due to High Prices, Recovery Expected with Lower Costs

The demand for liquefied natural gas (LNG) in China and India has declined due to high prices, but executives from Asian gas companies believe it will recover once prices fall.

Luo Yizhou, CEO of PetroChina International, stated that demand could rebound when LNG returns to a normal price range below $10 per million British thermal units (MMBtu), which is currently above $25 per MMBtu for October delivery to Northeast Asia.

The Strait of Hormuz continues to limit LNG supplies from the Persian Gulf due to conflict and difficulties in transporting gas through the strait, leading Asian buyers to compete intensely for shipments from other regions.